Otto raises $6m for project exploration, appraisal

West Perth exploration company Otto Energy Ltd has raised $6 million through a placement to fund capital expenditure, exploration and appraisal of the company's oil and gas assets.

The full text of a company announcement is pasted below

The Board of Otto Energy Limited ("Otto") is pleased to announce that it has arranged a placement of 37,500,000 Shares to be issued at a price of $0.16 per share to raise $6.0 million. The placement was heavily oversubscribed and final allocations were scaled back to the agreed amount.

The placement has been subscribed to by key leading London-based and Australian institutions. Otto views that participation by these respected institutions is a strong endorsement of the Company's recent exploration success in Turkey and the development plans for the year ahead for its exciting Filipino acreage.

The capital raising is being managed by Max Capital Pty Ltd and is scheduled to be completed on or about 7 February 2007.

The proceeds of the Placement will be used for capital expenditure and exploration and appraisal of the Company's Philippines oil and gas assets, appraisal and development of the Company's Turkish gas assets, pre-drilling planning on the Company's Argentina exploration project and working capital.